Monetary History Calendar: June 17-23

grnback

JUNE 17

2009 – PRESIDENT OBAMA RELEASES PLAN FOR FINANCIAL REFORM
“President Obama’s plan to reshape financial regulation seeks to give Washington the tools to police the shadow system of finance that has grown up outside the government’s purview, and to make it easier for regulators to head off problems at large, troubled institutions. However, the president’s plan results from many compromises with industry executives and lawmakers, and is not as bold as some had hoped.” Among the less than ” compromises with industry” were permitting financial institutions to promote various types of derivatives, cutting the number of bank regulators, and granting new powers to the private Federal Reserve.

JUNE 18

1926 – BIRTH OF CHARLES WALTERS, FOUNDER OF ACRES MAGAZINE, A VOICE FOR ECO-AGRICULTURE
“[O]ur forefathers took steps to protect the economic freedom of the United States by giving to Congress, elected by the people, the power to provide a monetary system independent of the monetary systems of other countries, and to regulate the value of the dollar, adopted as our monetary unit, or measure of value. This power automatically gave Congress the right to determine the value of the United States production in terms of United States money.”

2008 – CHRIS DODD PROPOSED HOUSING BAILOUT
As the chairman of the Senate Banking Committee Connecticut’s Christopher Dodd proposes a housing bailout to the Senate floor that would assist troubled subprime mortgage lenders such as Countrywide Bank, Dodd admitted that he received special treatment, perks, and campaign donations from Countrywide, who regarded Dodd as a “special” customer and a “Friend of Angelo.” Dodd received a $75,000 reduction in mortgage payments from Countrywide. The Chairman of the Senate Finance Committee Kent Conrad and the head of Fannie Mae Jim Johnson also received mortgages on favorable terms due to their association with Countrywide CEO Angelo R. Mozilo.

JUNE 19

1902 – DEATH OF LORD ACTON, ENGLISH HISTORIAN, POLITICIAN, AND WRITER
“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”

1946 – DEATH OF HENRY SIMONS, PROFESSOR OF ECONOMICS, UNIVERSITY OF CHICAGO
“The mistake lies in fearing money and trusting debt.”

JUNE 20

1756 – BIRTH OF WILLIAM RICHARDSON DAVIE, NORTH CAROLINA DELEGATE TO THE 1787-8 CONSTITUTIONAL CONVENTION AND GOVERNOR OF N. CAROLINA
“So low and hopeless are the finances of the United States, that, the year before last Congress was obliged to borrow money even, to pay the interest of the principal which we had borrowed before. This wretched resource of turning interest into principal, is the most humiliating and disgraceful measure that a nation could take, and approximates with rapidity to absolute ruin:
Yet it is the inevitable and certain consequence of such a system as the existing Confederation.”

JUNE 21

1940 — DEATH OF SMEDLEY BUTLER, MARINE CORP MAJOR GENERAL (MOST DECORATED MARINE IN US HISTORY AT THE TIME OF HIS DEATH)
“I spent thirty-three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism…I wouldn’t go to war again, as I have done, to protect some lousy investment of the bankers. There are only two things that we should fight for. One is the defense of out homes and the other is the Bill of Rights. War for any other reason is simply a racket…. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912…”

2012 – DEATH OF ANNA SCHWARTZ, CO-AUTHOR OF “A MONETARY HISTORY OF THE UNITED STATES”
“A Monetary History of the United States” contributed to a new consensus on monetary issues, including the sources of the Great Depression. The 888-page book asserts that the 1929 stock market crash and subsequent Great Depression was caused by mistakes by the Federal Reserve. . Former Federal Reserve Chairman Ben Bernanke called the work, ‘the leading and most persuasive explanation of the worst economic disaster in American history.’ ‘You’re right; we [the Fed] did it. We’re very sorry. But thanks to you, we won’t do it again.’
A month after the collapse of Lehman Brothers, Schwartz said in the Wall Street Journal interview the insolvent financial firms should not be bailed out, but rather shut down.

JUNE 22

1911 – SPEECH OF PRESIDENT WILLIAM HOWARD TAFT BEFORE NEW YORK STATE BANKERS’ ASSOCIATION
“There is no legislation, I care not what it is, tariff, railroad, corporation, or of a general political character, that at all equals in importance the putting of our banking and currency system on a sound basis.”
Of course, Taft’s definition of a “sound” banking and currency system was the plan being pushed by major bankers – the creation of a private central bank (which basically defines the Federal Reserve) and the ability of banking corporations to create our nation’s money – as debt.

1949 – BIRTH OF ELIZABETH WARREN, US SENATOR, MASSACHUSETTS
“What we need is a system that puts an end to the boom and bust cycle. A system that recognizes we don’t grow this country from the financial sector; we grow this country from the middle class.” “Powerful interests will fight to hang on to every benefit and subside they now enjoy. Even after exploiting consumers, larding their books with excessive risk, and making bad bets that brought down the economy and forced taxpayer bailouts, the big Wall Street banks are not chastened. They have fought to delay and hamstring the implementation of financial reform, and they will continue to fight every inch of the way.”

JUNE 23

1948 – WEST INTRODUCES NEW CURRENCY IN W. BERLIN, SOVIETS RESPOND WITH BLOCKADE
Several factors led to the blockade of W. Berlin by the Soviet Union. These included the unification of the French, British and US sectors into a West German government and the issuance of a currency in the new country. It was the issuance of a new currency in W. Berlin on June 23. The next day the Soviets imposed a complete blockade on Berlin.

2016 – BREXIT VOTE
Citizens in the United Kingdom vote in a national referendum to withdraw from the European Union. British voters felt their sovereignty, including economic sovereignty, was in peril by remaining in the EU. Other European nations, including those who have entirely lost their ability to issue and circulate their own national currency, are exploring a similar exit. [Note: The British maintained their authority to issue and circulate their currency, the Pound, despite being EU members, unlike other members.]

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

 

Advertisements

Monetary History Calendar: June 10-16

grnback

JUNE 10

1751 – PASSAGE OF BRITISH CURRENCY ACT
The Act restricted New England colonies from creating paper money The colonies had issued paper fiat money known as “bills of credit” to help pay for the French and Indian Wars. The Act limited future issuance of bills of credit to certain circumstances (i.e. to pay public debts, such as taxes, but not private debts, such as to merchants)

1816 – DELEGATES CONVENE CONSTITUTIONAL CONVENTION IN INDIANA
The Indiana Convention in 1816 and the Illinois Constitution in 1818 banned private banking corporations altogether. Voters in Wisconsin, plus four other states, rewrote existing constitutions requiring popular votes on every bank charter recommended by their legislatures as a result of corrupt banking practices associated with issuing bank notes. Only private banks that didn’t issue money (bank notes) operated in these states.

1932 – SPEECH BY LOUIS MCFADDEN (R- PA), CHAIRMAN OF THE US HOUSE BANKING AND CURRENCY COMMITTEE ON THE FLOOR OF CONGRESS
“The Federal Reserve (Banks) are one of the most corrupt institutions the world has ever seen…What is needed here is a return to the Constitution of the United States. We need to have a complete divorce of Bank and State. The old struggle that was fought out here in Jackson’s day must be fought over again… The Federal Reserve Act should be repealed and the Federal Reserve Banks, having violated their charters, should be liquidated immediately. Faithless Government officers who have violated their oaths of office should be impeached and brought to trial. Unless this is done by us, I predict that the American people, outraged, robbed, pillaged, insulted, and betrayed as they are in their own land, will rise in their wrath and send a President here who will sweep the money changers out of the temple.”

2008 – QUOTE BY FEDERAL RESERVE CHAIR BEN BERNANKE
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.” Four months later, the financial industry collapses and Congress passes a $700 billion bailout bill. The nation is mired in a “Great Recession;” for many an outright Depression. The economy today remains stagnant.

JUNE 11

2009 – POSTING ON “TAKE DOWN THE INTERNATIONAL MONETARY FUND” BLOG ENTITLED, “REFORM IS NECESSARY”
“The International Monetary Fund is a ploy for Western democracies to spread their influence and control over developing nations. Claiming to be philanthropic and economically supportive by providing loans, the IMF simply doles out Western currency in the form of loans with high interest rates to developing nations who could never possibly pay them back. This creates an unfair economic dependency of developing nations on Western countries.”

JUNE 12

2013 – “HISTORY TEACHES THAT WE HAVE THE POWER TO TRANSFORM THE NATION, HERE’S HOW,” ARTICLE PUBLISHED
“To achieve transformational change, we must proceed on two tracks: protesting what we oppose, and building alternative systems to create the world we want to see…
“Currently, people are building economic democracy – including worker-owned cooperatives, participatory budgeting, community supported agriculture, farmer’s markets, community banks and credit unions as well as local currencies and local investment networks, community land trusts, and more – so that people can strengthen their communities. In time, of course, national policies will need to be changed as well, in order to, for example: establish an open and transparent Federal Reserve that is democratically accountable, public rather than private creation of money, the end of corporate personhood, public funding of public campaigns, a new energy economy where every home, business and community uses energy efficiently and produces energy, the end of the destructive extraction economy, and so much more.”
https://www.popularresistance.org/history-teaches-that-we-have-the-power-to-transform-the-nation-heres-how/

JUNE 13

1933 – CONGRESSIONAL PASSAGE OF GLASS-STEAGALL ACT
Actual title was Banking Act of 1933. President Roosevelt signed it on June 16. Considered one of the most important post Depression laws, the legislation created the Federal Deposit Insurance Corporation, which protected bank deposits. It also instituted several bank reforms to curb speculation that caused the Depression. One important provision was to create a firewall between Main Street depository banks and Wall Street investment banks. The Act was repealed by the Gramm-Leach-Bliley Act in 1999.

2014 – “TO THE FUTURE PRIME MINISTER OF THE UK” BLOG POST CALLS FOR DEMOCRATIC MONEY CREATION
“To the future Prime Minister of the UK:
The same banks that caused the financial crisis currently have the power to create 97% of the UK’s money. They’ve used this power recklessly, putting most of the money they create into property bubbles and financial markets. And now they’re back to their old ways.
We need a change. The power to create money should only be used in the public interest, in a democratic, transparent and accountable way. The 1844 law that makes it illegal for anyone other than the Bank of England to create paper money should be updated to apply to the electronic money currently created by banks.
When new money is created, it should be used to fund vital public services or provide finance to businesses, creating jobs where they’re needed, instead of being used to push up house prices or speculate on the financial markets.”
http://www.positivemoney.org/?mailing=1 / https://thomasattwood.wordpress.com/page/5/

JUNE 14

2013 — FACEBOOK MESSAGE TO BILL MOYERS ON MONETARY REFORM
“Dear Mr. Moyers;
An extremely interesting conversation with Richard Wolf today on WAMC @ 2:30. He spoke of the critical problem with capitalism, but failed to say what the problem actually was and I found it interesting that even he decided not to speak of this critical problem.
I urge you to go to Stephen Zarlenga @ http://www.ami.org and read his book The Lost Science of Money. The critical problem with Capitalism is the private ownership of Money by the Federal Reserve since the beginning of our country and the fractional reserve system basing money as debt. I could go on and on but thought you would be better informed by reading this book. If you get a chance, tell me what you think.
Thank You
Henry A. Kirchdorfer III” https://www.facebook.com/moyersandcompany/posts/610306285654053

JUNE 15

1836 – CHARTER (LICENSE) FOR SECOND NATIONAL BANK OF THE UNITED STATES REPEALED
This was the third quasi national bank of the former British colonies — following the Bank of North America (1781-1785, chartered by the Continental Congress) and Bank of the United States (1791-1811, chartered by the US Congress). While called a “national” bank, it was not public but actually a commercial/corporate bank with the power to issue money directly. Early on, it issued a huge amount of money (more than 20 times its reserves) as loans that led to financial speculation and large corporate profits. A year later, it stopped issuing loans, resulting in a severe contraction of the money supply. This led to massive bankruptcies and the Panic of 1819. When President Andrew Jackson threatened to repeal its charter, the Bank’s leaders used its power to restrict money circulation to cause another depression. Bank President Nicolas Biddle wrote, “Nothing but widespread suffering will produce any effect on Congress…Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the recharter of the Bank.”

President Andrew Jackson said this about the bank; “The immense capital and peculiar privileges bestowed upon it enabled it to exercise despotic sway over the other banks in every part of the country. From its superior strength it could seriously injure, if not destroy, the business of any one of them, which might incur its resentment; and it openly claimed for itself the power of regulating the currency throughout the United States. In other words, it asserted (and it undoubtedly possessed) the power to make money plenty or scarce at its pleasure, at any time and in any quarter of the Union, by controlling the issues of other banks and permitting an expansion or compelling a general contraction of the circulating medium, according to its own will.”

JUNE 16

1929 – DEATH OF VERNON PARRINGTON, HISTORIAN
“The only safe and rational currency is a national currency based on the national credit sponsored by the state, flexible and controlled in the interests of the people as a whole.”

MONETARY HISTORY CALENDAR: June 3 – 9

grnback

JUNE 3

1864 – PASSAGE OF NATIONAL BANK ACT
The Act superseded the National Bank Act of 1863. Both Acts were pushed by bankers and their supporters to undercut Greenbacks. A system of nationally chartered, private/corporate banks was established and expanded. These new national banks were provided with virtually tax-free status and subsidized through purchasing of government bonds with discounted Greenbacks. These banks were permitted to then create “US Bank Notes” (debt-based money) which entered the money supply – to be used in payment of taxes and duties only. This system enriched banks and worked to wean the US away from Greenbacks (debt free money). The Act limited the issuance of Greenbacks to $300 million

JUNE 4

1910 – BIRTH OF ROBERT B. ANDERSON, SECRETARY OF THE TREASURY UNDER PRESIDENT DWIGHT D. EISENHOWER
“When a bank makes a loan it simply adds to the borrowers’ deposit account in the bank by the amount of the loan. The money is not taken from anyone else’s deposit; it was not previously paid in to the bank by anyone. It’s new money, created by the bank for the use of the borrower.”

JUNE 5

1883 – BIRTH OF JOHN MAYNARD KEYNES, ECONOMIST
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some…As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

2013 – STATEMENT BY POPE FRANCIS
“Man is not in charge today, money is in charge, money rules. God our Father did not give the task of caring for the earth to money, but to us, to men and women: we have this task! Instead, men and women are sacrificed to the idols of profit and consumption: it is the “culture of waste.”

JUNE 6

1934 – CHICAGO PLAN INTRODUCED IN THE US CONGRESS
The “Chicago Plan” was a proposal developed by several prominent economists directed at President Roosevelt to end the Great Depression. One hundred and fifty academic economists signed the Plan; another 40 approved it with reservations. Main features: 1. Only the government would create money. 2. The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. 3. The proposal recognized the distinction between money and credit. Senator Bronson Cutting (R, NM) introduced The Plan in Congress (S. 3744). In several respects, it was the precursor to the National Emergency Employment Act (HR 6550) introduced by Rep. Dennis Kucinich in 2010, and reintroduced as HR 2990 in 2011.

JUNE 7

2013 – PUBLISHED ARTICLE, “THE WAY MONEY IS CREATED IS AT THE ROOT OF THE ENVIRONMENTAL AND ECONOMIC CRISIS” BY BRUCE NIXON
“Do you know how our money is created? Most people don’t…
“97% of our money is created by commercial banks when they make loans, i.e. interest bearing debt…Only 3% is created in the form of notes and coins. Thus the profits of creating money go to the commercial banks rather than the public coffers…
“The current way of creating money gives the big banks enormous power…It means that the commercial banks, not our government, control one of the key levers of our economy. So it is one of the ways we let big banks subvert democracy…
“The way money is created is at the root of the environmental and economic crisis.
“Firstly, it drives unsustainable growth and consumption. Corporations must produce and sell more to pay interest and repay loans. Easy credit encourages more and more unsustainable consumption.
“Secondly, this way of creating money increases the cost of everything and fuels the nation’s escalating debt…
“We are encouraged to worship great god growth (GDP) rather than the creation of wellbeing.
“Meanwhile millions of people suffer unemployment and needless austerity through so-called “Neo-Liberal” policies, which have never worked…
“It does not have to be this way…
“There is a growing realization that fresh ideas are needed if these crises are to be avoided…
“Under proposed monetary reforms, commercial banks would be prohibited from creating money. That would be the sole responsibility of national reserve banks: to provide the money supply required for national objectives, decided by democratically elected government. Meanwhile, commercial banks would continue to fulfill their proper role of providing both the traditional bank services that individuals and businesses require and investment services…
“Ordinary people, so-called, know that something is wrong; it’s up to us to inform ourselves and demand radical reform. Otherwise governments will continue with fixes that won’t work rather than the radical change that is needed.”

JUNE 8

1042 – REIGN OF KING EDWARD OF ENGLAND BEGINS
Taking any interest on loaned money was considered a sin in early England. Under King Edward’s reign, those who charged interest (usurers) were declared outlaws and banished from the country.

1809 – DEATH OF THOMAS PAINE, COLONIAL REVOLUTIONARY
Commenting on the value of colonial-issued money, the “Continental”…
”Every stone in the Bridge, that has carried us over seems to have a claim upon our esteem. But this was a corner stone, and its usefulness cannot be forgotten.”

1845 – DEATH OF ANDREW JACKSON, PRESIDENT OF THE UNITED STATES
“The bold effort the present (central) bank had made to control the government … are but premonitions of the fate that await the American people, should they be deluded into a perpetuation of this institution or the establishment of another like it.”
“If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations.”

JUNE 9

2014 – PUBLICATION OF REPORT “WHO PAYS FOR BANK REGULATION” BY GOLDMAN SACHS CORPORATION
“In the wake of the financial crisis, a wide range of new and revised rules, regulations and practices have been imposed on the US banking industry. While many of these steps are designed to strengthen the safety and soundness of the banking system, they also act as a tax on banks: by changing relative prices, regulation makes some activities more expensive and others cheaper…While there is some added subtlety to the results of our analysis, we find in general that low-income consumers and small businesses – which generally have fewer or less effective alternatives to bank credit – have paid the largest price for increased bank regulation.”

How thoughtful of Goldman Sachs corporate leadership to be concerned about the plight of low-income consumers and small businesses in banking reform. One wonders if the corporation, which Rolling Stone’s Matt Taibbi called the “great vampire squid” for its ability to suck money instead of blood, had similar sympathies when it received $12.9 billion in bailout money related to AIG, or an additional $10 billion in federal TARP bailout funds (which shortly afterwards in the later case they decided to pay 953 employees bonuses of at least $1 million) — all of which served to increase its own economic solvency and political power. Goldman Sachs’ political power is demonstrated by its $5.8 million in political contributions/investments and $3.2 million in lobbying during the 2016 election cycle — funds used to water down or gut existing financial regulations. It’s this political influence, and the influence of other financial corporations, that also makes it nearly impossible to promote real monetary reform in Congress.

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR: May 27 – June 2

grnback

MAY 27

1923 – BIRTH OF HENRY KISSINGER, 56TH US SECRETARY OF STATE
“If you control the oil, you control entire nations; if you control the food, you control the people; if you control the money, you control the entire world.”

MAY 28

1836 – STATEMENT BY JOHN C. CALHOUN, FORMER US VICE-PRESIDENT
“A power has risen up in the government greater than the people themselves, consisting of many and various powerful interests, combined in one mass, and held together by the cohesive power of the vast surplus in banks.”

2014 – STANLEY FISCHER BEGINS TERM AS A MEMBER OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. A MONTH LATER, HE BECAME VICE CHAIR
“I thought that when Dodd-Frank [proposed bank reform legislation] started, that the banks would not succeed in influencing it, having lost all the prestige they lost…Boy, was I wrong.”

MAY 29

1998 – DEATH OF BARRY GOLDWATER, REPUBLICAN SENATOR FROM ARIZONA
“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”

2015 – “BANKS ARE NOT INTERMEDIARIES OF LOANABLE FUNDS — AND WHY THIS MATTERS” PUBISHED BY ZOLTAN JAKAB AND MICHAEL KUMHOF, BANK OF ENGLAND WORKING PAPER #529
“The quantity of [bank] reserves is a consequence, not a cause, of lending and money creation…in the real world, there are no pre-existing loanable funds…Instead, banks create new funds in the act of lending…there is no deposit multiplier mechanism that imposes quantitatyive constrains on banks’ ability to create money in this fashion. The main constraint is banks’ expectations concerning their profitability and solvency.”

MAY 30

1896 – DEATH OF MARK “BRICK” POMEROY, NEWSPAPER PUBLISHER, CURRENCY REFORMER AND ORGANIZER OF “GREENBACK CLUBS”
At the national Greenback Party convention in 1876, Pomeroy was named chairman of a committee to coordinate the activities of local Greenback clubs across the country. The clubs served as forums for monetary education and mobilization on behalf of the Greenback Party. During his leadership, Pomeroy claimed almost 6000 clubs had been chartered: the most in Missouri, followed by Illinois. Michigan, Iowa, Pennsylvania, Texas and New York followed in number of clubs.

1908 – ALDRICH-VREELAND ACT SIGNED BY PRESIDENT THEODORE ROOSEVELT
The Act established the National Monetary Commission recommending the Federal Reserve Act of 1913, creating the Federal Reserve System, the current private central bank (actually 12 banks to give the appearance of decentralization of economic power and control) of the US. The Aldrich-Vreeland Act was passed in response to the economic Panic of 1907 of bank failures. JP Morgan and other bankers who had been the target of Roosevelt’s trust busting efforts through more aggressive enforcement of the Sherman Anti-Trust Act manufactured the Panic. Through manipulating the stock market, calling in loans and not granting new ones, Morgan severely contracted the nation’s money supply. Thousands of banks were overextended. An economic crash followed. The Panic of ’07 was the pretext used to end the nation’s system of decentralized private banking by creating a system of centralized private banking – the Federal Reserve System.

MAY 31

1857 – BIRTH OF POPE PIUS XI
“For what will it profit men that a more prudent distribution and use of riches make it possible for them to gain even the whole world, if thereby they suffer the loss of their own souls?  What will it profit to teach them sound principles in economics, if they permit themselves to be so swept away by selfishness, by unbridled and sordid greed, that, ‘hearing the Commandments of the Lord, they do all things contrary.”

JUNE 1

1938 – BIRTH OF HERMAN DALY, ECONOMIST, AUTHOR OF “STEADY STATE ECONOMICS”
“If our present banking system, in addition to fraudulent and corrupt, also seems “screwy” to you, it should. Why should money, a public utility (serving the public as medium of exchange, store of value, and unit of account), be largely the by-product of private lending and borrowing?…Why should the public pay interest to the private banking sector to provide a medium of exchange that the government can provide at little or no cost? Why should seigniorage (profit to the issuer of fiat money) go largely to the private sector rather than entirely to the government (the commonwealth)?
“Is there not a better away? Yes, there is. We need not go back to the gold standard. Keep fiat money, but move from fractional reserve banking to a system of 100% reserve requirement…Banks would no longer be able to live the alchemist’s dream by creating money out of nothing and lending it at interest.”
From “Nationalize Money, Not Banks”

JUNE 2

1995 – PAPERBACK PUBLICATION OF “THE CHICAGO PLAN & NEW DEAL BANKING REFORM” BY RONNIE PHILLIPS
This work presents a comprehensive history and evaluation of the role of the 100 percent reserve plan in the banking legislation of the New Deal reform era from its inception in 1933 to its re-emergence in the current financial reform debate in the US.

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR: May 20 – 26

grnback

MAY 20

1851- BIRTH OF CHARLES MACUNE, HEAD OF SOUTHERN FARMERS’ ALLIANCE AND ORIGINATOR OF THE POPULIST “SUB-TREASURY PLAN”
The “Sub-Treasury Plan,” developed by the southern Populist Macune, was an ingenious proposal to circumvent banking corporations, merchants and landlords by farmers to avoid debt at high interest, which often resulted in the loss of their farms. The proposal called for farmers to store their harvest in federal warehouses when prices for their commodities were low. Farmers would leverage those commodities for loans (up to 80% of the market value in federal notes) to support themselves until prices rose. The proposal was especially useful to southern farmers with non-perishable crops (i.e. cotton). The farmer had one year to sell the crop and then pay back the note and 1% interest.

1891 — FOUNDING OF THE PEOPLE’S PARTY IN CINCINNATI, OHIO
From their platform: “The right to make and issue money is a sovereign power to be maintained by the people for the common benefit, hence we demand the abolition of National banks as banks of issue, and, as a substitute for National bank notes, we demand that legal tender treasury notes be issued in sufficient volume to transact the business of the country on a cash basis, without damage or especial advantage of any class or calling, such notes to be legal tender in payment of all debts, public and private, and such notes when demanded by the people shall be loaned to them at not more than two per cent per annum upon nonperishable products as indicated in the subtreasury plan, and also upon real estate, with proper limitation upon the quantity of land and amount of money.”

MAY 21

1912 – SPEECH BY J. LAWRENCE LAUGHLIN, CHAIR OF THE EXECUTIVE COMMITTEE OF THE NATIONAL CITIZENS’ LEAGUE, ON MONETARY REFORM
Born in Deerfield, Ohio, Laughlin was the first chair of the economics department at the University of Chicago and chair of the Executive Committee of the National Citizens League for the Promotion of a Sound Banking System from 1911-13. The League was established and funded with $5 million in contributions from the big New York banks (including those owned by John D. Rockefeller and J.P Morgan) to establish an “educational fund.” The fund financed respected university professors, such as Laughlin, to endorse the concept of creating a private central bank, what became the Federal Reserve Bank, created by the 1913 Federal Reserve Act. The “Citizens'” League provided a terrific cover in providing the appearance that privatizing/corporatizing money creation by a private national central bank was sound and reasonable since “objective” intelligent university professors promoted it.

MAY 22

1912 – SPEECH BY ROBERT MCCABE, VICE CHAIR OF THE OHIO CHAPTER OF THE NATIONAL CITIZENS’ LEAGUE, ON MONETARY REFORM
McCabe, an Ohio attorney, was recruited to speak on behalf of the plan supported by the nation’s biggest banks to create a private national central bank. He spoke throughout Ohio and the Midwest. He spoke on his date in Illinois. Among the points in his remarks was that the creation of what would become the Federal Reserve System would “avoid the tendency to take the money power of the nation out of the hands of the many and put it in the hands of the few.” The reality was and remains just the opposite.
The New York Times on the National Citizens’ League: ““A million dollars doesn’t go very far in a campaign of education such as is being carried on by the National Citizens League for the promotion of a sound banking system, yet the contribution of $1,000,000 for that purpose by individual Directors of the National banks of the country a short time ago provoked much comment and a suggestion that the electorate was the be corrupted by the use of these funds.”

MAY 23

1933 – ARTICLES OF IMPEACHMENT PRESENTED IN THE US HOUSE OF REPRESENTATIVES AGAINST THE FEDERAL RESERVE BOARD OF GOVERNORS, THE OFFICERS AND DIRECTORS OF THE FEDERAL RESERVE BANKS, THE US SECRETARY OF TREASURY AND OTHERS FOR THEIR COLLUSION IN CAUSING THE GREAT DEPRESSION.
US Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, introduced the Articles of Impeachment. McFadden stated,
“The Great Depression was not accidental; it was a carefully contrived occurrence… bankers sought to bring about a condition of despair here, so that they might emerge as rulers of us all.”
“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders, which prey upon the people of the United States for the benefit of themselves and their foreign customers…The truth is, the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly, which operates the Federal Reserve Board.”

1937 – DEATH OF JOHN D. ROCKEFELLER, OIL AND FINANCIAL CAPITALIST
“God gave me my money!”

MAY 24

1543 – DEATH OF NICOLAS COPERNICUS, MATHEMATICIAN AND ASTRONOMER
“Although there are countless maladies that are forever causing the decline of kingdoms, princedoms, and republics, the following four (in my judgment) are the most serious: civil discord, a high death rate, sterility of the soil, and the debasement of coinage.
The first three are so obvious that everybody recognizes the damage they cause; but the fourth one, which has to do with money, is noticed by only a few very thoughtful people, since it does not operate all at once and at a single blow, but gradually overthrows governments, and in a hidden, insidious way.”
Debasement means lowering the value of. What lowers the value of our currency? How about creating it out thin air like the Federal Reserve via Quantitative Easing (QE) has done to prop up major banks or by banks when they create money as debt when they issue loans?

1604 – ENGLISH COURT DECISION ON “MIXED MONEY” CASE
English court rules that sovereign governments possess the power to create, regulate, limit and define money.
“The Mixt Moneys case decided that Money was a Public Measure, a measure of value, and that, like other measures, it was necessary in the public welfare that its dimension of volume should be limited, defined and regulated by the State. The whole body of learning left us by the ancient and renascent world was invoked in this celebrated dictum: Aristotle, Paulus, Godin and Budelius were summoned to its support; the Roman law, the common law and the statutes all upheld it; ‘the State alone had the right to issue money and to decide of what substances its symbols should be made, whether of gold, silver, brass or paper. Whatever the State declared to be money, was money.’”
– From The History of Money in America by Alexander Del Mar

2005 – “NAZISM AND THE GERMAN ECONOMIC MIRACLE” PRINTED SECTION OF BOOK BY HENRY C.K. LIU IN ASIA TIMES
“The Nazis came to power in Germany in 1933, at a time when its economy was in total collapse, with ruinous war-reparation obligations and zero prospects for foreign investment or credit. Yet through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies it could exploit, into the strongest economy in Europe within four years, even before armament spending began. In fact, German economic recovery preceded and later enabled German rearmament, in contrast to the US economy, where constitutional roadblocks placed by the US Supreme Court on the New Deal delayed economic recovery until US entry to World War Two put the US market economy on a war footing. While this observation is not an endorsement for Nazi philosophy, the effectiveness of German economic policy in this period, some of which had been started during the last phase of the Weimar Republic, is undeniable.” http://www.atimes.com/atimes/Global_Economy/GE24Dj01.html

MAY 25

1787 – US CONSTITUTIONAL CONVENTION BEGINS
The Congress shall have power to…coin money [and] regulate the value thereof” Article 1, Section 8, US Constitution.

MAY 26

2007 – PUBLICATION OF ARTICLE “CREDIT AS A PUBLIC UTILITY: THE KEY TO MONETARY REFORM” BY RICHARD COOK
“We now need to return to the recognition that money and credit truly are public utilities as recognized during colonial days and at the times of great crises such as the Revolutionary War, the Civil War, and the New Deal.
Today we are in a similar crisis, when the solution is the same as it has been in the past. It is for the commonwealth of Americans, acting through their elected representatives, to exert their constitutional prerogatives in controlling the nation’s supply of money and credit.”

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

 

MONETARY HISTORY CALENDAR May 13 – 19

Greenbackk

MAY 13

2015 – THE CENTRAL PROBLEM WITH CENTAL BANKS: THEY BECOME THE GREATER FOOLS/BAG-HOLDERS” ARTICLE BY CHARLES HUGH SMITH
The central problem with central banks is their mandate now includes propping up all asset markets globally….Central banks have inflated the markets to such high valuations that no central bank can possibly buy enough to keep the bubble intact…But having succeeded in blowing another unprecedented global bubble in assets, central banks have backed themselves into a corner of direct asset purchases to prop up markets. http://www.oftwominds.com/blogmay15/no-bid5-15.html

MAY 14

2013 – ARTICLE, “MONEY HAS BEEN PRIVATIZED BY STEALTH” BY BEN DYSON
“It’s common knowledge that printing your own £10 notes at home is frowned upon by Her Majesty’s police. Yet there’s a small collection of companies that are authorized to create – and spend – more new money than the counterfeiters have ever been able to print. In industry jargon, these companies are called “monetary and financial institutions”, but you probably know them by their street name: “banks”.
The money that they create, effectively out of nothing, isn’t the paper money that bears the logo of the government-owned Bank of England. It’s the electronic money that flashes up on the screen when you check your balance at an ATM. This electronic money currently represents over 97% of all the money in the economy. Only 3% of money is still in that old-fashioned form of real cash that can be touched.”

MAY 15

1915 – BIRTH OF PAUL SAMUELSON, ECONOMIST (FIRST AMERICAN TO WIN THE NOBEL PRIZE FOR ECONOMICS)
“Few understand that all our money arises out of debt and IOU operations. The banking system as a whole can do what each small bank cannot do: it can expand its loans and investments many times the new reserves of cash created for it, even though each small bank is lending out only a fraction of its deposits.” Economics, An Introductory Analysis by Professor Paul A. Samuelson. (Best selling college economics textbook of all time, c 1948.)

1931 – “QUADRAGESSIMO ANNO” LETTER ISSUED BY POPE PIUS XI
The Pope discusses the ethical implications of economic and social order in this letter, warning of the dangers of unrestrained capitalism.
“Economic dictatorship is being most forcibly exercised by the few who hold the money and completely control it, control credit and the lending of money. Hence they regulate the flow of the life-blood whereby the entire economic system lives, and have so firmly in their grasp the soul of economics that no one can breathe against their will.”

MAY 16

1876 – SECOND GREENBACK NATIONAL CONVENTION OPENS IN INDIANAPOLIS
May 16–18, 1876 — Academy of Music, Indianapolis, Indiana. There were 239 delegates present from 17 states. Peter Cooper was nominated for President of the Greenback Party (calling for the creation of debt-free national money) with 352 votes to 119 for three other contenders.

1912 – PUJO COMMITTEE HEARINGS BEGIN
A special subcommittee of the House Banking and Currency Committee began hearings under its Chairman, Arsene P. Pujo. Its purpose was to investigate the powers of the nation’s “money trust.” Its final report, issued in 1913, concluded that the power over the nation’s money and credit was concentrated in a small group of Wall Street bankers. The report created a climate for reform. Unfortunately one of the reforms advocated for was the misnamed Federal Reserve Act, which provided the appearance that finances would become a public function.

MAY 17

1901 – FINANCIAL PANIC
The Financial Panic of 1901 was the first stock market crash. This was caused in part by several powerful investors trying to gain control of the Northern Pacific Railway. During the afternoon of May 17, 1901 the market started to decline sharply. Investors on the floor of the New York stock Exchange began to panic. An overwhelming yell of “Sell, sell, sell” could be heard; only fueling the panic. This cornering of stock caused a panic among many small investors resulting in the ruin of thousands of small investors.

1930 – BANK OF INTERNATIONAL SETTLEMENTS ESTABLISHED
This is the central bank of all central banks, established as an international financial institution to “foster international monetary and financial cooperation.” Headquartered in Basel, Switzerland. the BIS serves to strengthen the international private banking system, not national economies. The BIS advocates the establishment of a global currency, building on the International Monetary Fund “Special Drawing Rights” – a quasi currency, which has a value, based on a basket of 4 major currencies (the dollar, euro, pound and yen).

2002 – TALK BY WILLIAM HUMMEL, AUTHOR, MONETARY RESEARCHER
“Banks are not ordinary intermediaries, like non-banks, they also borrow, but they do not lend the deposits they acquire. They lend by crediting the borrowers account with a new deposit… The accounts of other depositors remain intact and their deposits fully available for withdrawal. Thus a bank loan increases the total of bank deposits, which means an increase in the money supply.”

MAY 18

1846 – STATE OF IOWA CONSTITUTION ADOPTED
Article VIII of the original constitution states:
“Municipal corporations. Section 4. No political or municipal corporation shall become a stockholder in any banking corporation, directly or indirectly.
Banking associations. Section 5. No Act of the General Assembly, authorizing or creating corporations or associations with banking powers, nor amendments thereto shall take effect, or in any manner be in force, until the same shall have been submitted separately, to the people, at a general or special election, as provided by law, to be held not less than three months after the passage of the Act, and shall have been approved by a majority of all the electors voting for and against it at such election.”

1914 – FORMAL SIGNING OF THE ORGANIZATION CERTICATE ESTABLISHING THE CHICAGO FEDERAL RESERVE BANK
“The actual process of money creation takes place in commercial banks. Banks can build up deposits by increasing loans and investments…This unique attribute of the banking business was discovered several centuries ago. At one time, bankers were merely middlemen. They made a profit by accepting gold and coins for safekeeping and lending them to borrowers. But they soon found that the receipts (bank notes or IOUs) they issued were being used as if they were a means of payment. These receipts were acceptable as if they were money since whoever held them could go to the banker and exchange them for metallic money. Then bankers discovered…that they could make loans merely by giving borrowers their promises to pay (bank notes). In this way banks began to create money…More notes (IOUs) could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time…Demand deposits (checks) are the modern counterpart of bank notes. It was a small step from printing notes to making book entries to the credit of borrowers which the borrowers in turn, could ‘spend’ by writing checks.”
Federal Reserve Bank of Chicago; Nichols, Dorothy M (1961). Modern Money Mechanics; a workbook on deposits, currency and bank reserves. OCLC 510802. The 1992 revision of this booklet is available on wikisource

MAY 19

1977 – QUOTE BY BIRTH OF EARL OF CAITHNESS (MALCOLM IAN SINCLAIR), MEMBER OF THE UK HOUSE OF LORDS
“The next government must grasp the nettle, accept their responsibility for controlling the money supply and change from our debt-based monetary system. My Lords, will they? If they do not, our monetary system will break us and the sorry legacy we are already leaving our children will be a disaster.”

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR May 6 -12

grnback

MAY 6

2012 – GREEK PARLIAMENTARY ELECTION RESULTS IN 60% SUPPORT FOR PARTIES OPPOSED TO AUSTERITY MEASURES
The elections resulted in a coalition government led by the New Democracy Party. The Coalition of the Radical Left (SYRIZA) came in second. They and other parties, agreed, however, that the austerity terms of the bailout agreement with the European Union (EU), European Central Bank and the International Monetary Fund must be renegotiated. When Greece joined the European Union (like other nations), it gave up completely its monetary sovereignty. It no longer had the ability to create and distribute its own money as a means of economic health – including using democratic money creation to help its own people. It transferred that authority to the EU when it began accepting the euro. The U.S. still technically possesses monetary sovereignty since it possesses its own currency – the dollar. The problem is that is still lost its sovereignty when it transferred to corporate interests, namely the Federal Reserve and banking corporations, the ability to create and circulate money – as debt via loans.

MAY 7

1873 – DEATH OF SALMON P. CHASE, US TREASURY SECRETARY/US SENATOR FROM OHIO
“My agency, in procuring the passage, of the National Bank Act, was the greatest financial mistake of my life. It has built up a monopoly that affects every interest in the country. It should be repealed. But before this can be accomplished, the people will be arrayed on one side and the banks on the other in a contest such as we have never seen in this country.”
[NOTE: The National Bank Acts of 1863 was known originally as the National Currency Act and was updated the following year. The Act established chartered national banks that could issue bank notes, which were backed by the United States Treasury. These notes existed side by side to public “Greenbacks” (directly issued by the government). Bankers supported the Bank Acts as a means to eventually replace Greenbacks and, thus, gain full control of the US money system.]

MAY 8

1884 – BIRTH OF HARRY TRUMAN, 33RD PRESIDENT OF THE U.S.
‘”There is nothing new in the world except the history you do not know.”
[NOTE: Why the monetary arena (problems and possible democratic reforms) seems new is because we never learned its history – in school, through the media, even in our activist organizations. Many activists still don’t – believing it too complicated, unrelated to other economic concerns or associated with political ideologies unlike their own. Social change activists, thus, ignore this arena at their peril.]

MAY 9

2014 – “WHO SHOULD HAVE THE POWER TO CREATE MONEY?” ARTICLE BY ANDREW JACKSON OF POSITIVE MONEY
“Who should have the power to create money? In Modernising Money we argue that the power to create money should be removed from the banks and transferred to a democratic, transparent, and accountable body. Martin Wolf recently backed these proposals, but Ann Pettifor describes them as ‘deeply flawed’ and ‘outlandish’.
One of Ann’s main concerns is whether a committee can correctly make decisions over how much money should be added to (or removed from) the economy.
Let’s approach this by considering the different options for who could be given the power and authority to create money:
• Banks – as per the status quo
• Banks – heavily reformed (as Ann would suggest)
• Elected politicians
• The Monetary Policy Committee at the Bank of England (as proposed in Modernising Money)”
Full article at http://www.positivemoney.org/2014/05/power-create-money

MAY 10

1775 – CONTINENTAL CONGRESS ISSUES “CONTINENTALS”
The Continental Congress voted to issue $200 million in paper money, “continental currency” or “continentals”, to finance the American Revolution. The money was essential since British pounds were in short supply. The currency lost much of their value during the war due to the flooding of British counterfeit “continentals” as a means to destroy the colonial economy. Inflation was also due to continentals being used to fund war purchases rather than socially and economically useful goods and services. Nevertheless, the colonial currency served its purpose in allowing the colonies to economically and militarily resist and defeat the most powerful nation on earth.

1837 – US FINANCIAL PANIC
Banks limited credit and starting calling on debtors to repay. This ignited the Financial Panic of 1837. Urban worker faced rising unemployment and food prices. A prolonged economic depression followed, including hundreds of bank failures. The economic depression that followed lasted nearly five years. This is the inevitable result of a debt-based money system – the lessons of which we never seem to learn.

1915 – BIRTH OF ROBERT HEMPHILL, CREDIT MANAGER, FEDERAL RESERVE BANK OF ATLANTA
“If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.”

MAY 11

2007 – PUBLISHED ARTICLE, “MONETARY REFORM AND HOW A NATIONAL MONEY SYSTEM SHOULD WORK” BY RICHARD COOK
“[T]he solution lies with the federal government taking back its constitutionally-authorized control of the credit of the nation from the financiers and managing it as previously stated—as a public utility… It is essential to realize that the central government of a sovereign nation has the right, the ability, and the responsibility to introduce ALL new credit into existence. This is totally different from having the central bank “print money” by relaxing lending policies, resulting in an infusion of cheap loans, which must still be repaid.
Sovereign creation of credit is not based on debt. It is and should be based on direct spending of money into circulation by the government itself. Obviously the government should do this in a way that promotes the best interests of the members of society while respecting the varying degrees of contribution by those of different levels of skill and achievement. It is quite possible to enact such a program with due regard to all established conventions of private property and the private ownership and control of existing wealth.”

MAY 12

1933 – THOMAS AMENDMENT BECOMES LAW – GIVES FDR POWER TO CREATE MONEY
Attached as Title III to the Agricultural Adjustment Act of May 12, 1933, the Thomas Amendment, drafted by Oklahoma Senator Elmer Thomas, provided New Deal relief to farmers suffering from low prices due to the Great Depression. The solution was to expand the currency.
“The amendment granted the president broad discretionary powers over monetary policy. It stated that whenever the president desired currency expansion, he first must authorize the open market committee of the Federal Reserve to purchase up to $3 billion of federal obligations. Should open market operations prove insufficient, the president had several options. He could have the U.S. Treasury issue up to $3 billion in greenbacks, reduce the gold content of the dollar by as much as 50 percent, or accept $100 million dollars in silver at a price not to exceed fifty cents per ounce in payment of World War I debts owed by European nations.”
http://www.okhistory.org/publications/enc/entry.php?entry=TH007

1948 – THE FORMATION OF THE STATE OF ISRAEL IS PROCLAIMED
Solomon, the son of David, was an early King of Israel from 970-931 BC. He was also the author of the Book of Proverbs in the Bible. From Proverbs 22:74: “The borrower is servant to the lender.” What was true nearly 3000 years ago is still true today for individuals and organizations — including governments.

2009 – BLOOMBERG ARTICLE: NY FEDERAL RESERVE BANK CLAIMS IT IS A PRIVATE INSTITUTION
“The New York Fed is one of 12 regional Federal Reserve banks and the one charged with monitoring capital markets. It is also managing $1.7 trillion of emergency lending programs. While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.”

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/